Transformation continues despite slowing growth
Opportunity for domestic brands to take to regional stage
It was the depth of this change, coupled with the youth, vitality and optimism of Indonesian people, that led WPP to launch our inaugural BrandZ™ Top 50 Most Valuable Indonesian Brands ranking last year.
The pace of the country’s growth has slowed in the past 12 months due to declining demand from Indonesia’s biggest neighbors and trading partners. But we are no less excited about the opportunities for brands in Indonesia now.
GDP growth may be slower today by Indonesian standards, but GDP per head is now four times what it was in 2000. The economy is still expanding at rates that are the envy not just of more mature markets far away but also many of its regional neighbors.
This is a market that has bounced back before; its people are resilient and quick to adapt to changing circumstances. Now, the International Monetary Fund is forecasting growth rates of 5 percent in 2016 and has an even more positive outlook for the longer term.
The desire for progress among Indonesian people – which swept reformist President Joko Widodo to power in 2014 – is still evident, as is the rising wave of technology across the country. This is not just connecting people to the internet, though that is a significant shift in itself; it is also providing the means for further transformation, through web-based businesses that are innovating and disrupting established ways of working, and offering new ways of communicating and building brands.
In this study of the most valuable brands, and our analysis of what has made the strongest so successful, we see that some Indonesian businesses have used this period of economic adjustment wisely, investing in nurturing brand equity to accelerate their growth when demand rebounds.
In comparing this year’s ranking with that of a year ago, we see clear evidence that strong brands are protected from the harshest of external conditions and, over 10 years of Global BrandZ™ valuations, we have seen that the strongest brands are those that recover the fastest.
Indonesia’s strongest and most valuable brands have not only beaten the stock market indexes in terms of shareholder returns (see page 42 for details), they have also positioned themselves to take advantage of a new regional growth opportunity.
The ASEAN Free Trade Agreement opens the door to some of Indonesia’s leading brands becoming powerful regional brands. Analysis of this year’s Top 50 shows that the best Indonesian brands display many of the qualities that have made successful global brands great. There is a strong sense here that Indonesian brands are now ready to take to the world stage.
Whether you’re an Indonesian brand or an international company, in this report, you’ll find knowledge and insight to help you create and grow more effectively in Indonesia – and beyond.
On page 26, our Top 20 Take Aways provide succinct, action-oriented recommendations for brands based on our expert analysis of the market. We’ve also included an overview of each of Indonesia’s Top 50 Most Valuable Brands, along with market wisdom and sharp insights from WPP experts working in Indonesia through Thought Leadership and Best Practice essays. All of this is presented with stunning photography and a vibrant design that reflects the dynamism and variety of Indonesia itself.
WPP is the global communications services leader and our companies have been working in Indonesia for 17 years. Today, 1,900 people work across WPP companies in this market, providing advertising, marketing, insight, media, digital, shopper marketing and PR expertise as part of our global presence in 112 countries. By linking all of this talent, creativity, wisdom and horizontality, we amplify global trends and insights to help our clients in useful and unique ways.
We invite you to access our unrivalled BrandZ resource library. Along with the new BrandZ™ Top 50 Most Valuable Indonesian Brands, the library includes these annual studies: BrandZ™ Top 100 Most Valuable Global Brands, BrandZ™ Top 100 Most Valuable Chinese Brands, BrandZ™ Top 50 Most Valuable Indian Brands and BrandZ™ Top 50 Most Valuable Latin American Brands. To download these and other reports, please visit www.BrandZ.com. For the interactive BrandZ™ mobile app, go to www.BrandZ.com/mobile.
The backbone of all of this intelligence remains the WPP proprietary BrandZ™ study. It is the world’s largest and only consumer-focused source of brand equity knowledge and insight, using the unique, authoritative BrandZ™ brand valuation methodology by Millward Brown.
First, we analyze corporate financial data and strip away everything that doesn’t pertain to the branded business. Then we take a crucial step that makes BrandZ™ unique among brand valuation methodologies: we conduct in-depth consumer research with more than 170,000 consumers a year, across more than 50 countries, to assess consumer attitudes to and relationships with more than 100,000 brands.
Our database includes information from over three million consumers. It reveals the power of the brand in the mind of the consumer; it shows how brands create a predisposition to buy and, crucially, show a positive correlation between strong, valuable brands, increasing shareholder value and better sales.
At WPP, we’re passionate about using our creativity to build and nurture strong, differentiated brands that deliver lasting shareholder value. To learn more about how to apply our experience and expertise to your brand, please contact any of the WPP companies that contributed expertise to this report. Turn to page 148 for summaries of each company and the contact details of key executives. Or feel free to contact me directly.
CEO, The Store WPP, EMEA and Asia